- Total revenue for the second quarter of $ 145.8 million, up 96% year-on-year
- Customers contributing more than $ 100,000 in TTM revenue 104% year-over-year
<p class = "canvas-atom canvas -text Mb (1.0 cm) Mb (0) – sm Mt (0.8 cm) – sm" type = "text" content = "SAN JOSE, California, September 05, 2019 (GLOBE NEWSWIRE) – September 5, 201
“Zoom delivers happiness to our customers by offering a frictionless, unified communications platform that can transform how teams communicate and collaborate. Our technology enables businesses to make decisions faster, increase engagement and increase productivity. I am proud that we continue to build trust and create value for customers, evidenced by our strong combination of total revenue growth of 96% with increased profitability and free cash flow in Q2, "commented Eric S. Yuan, Founder and CEO director of Zoom.
<p class = "canvas-atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = " Second Quarter Fiscal 2020 Financial Highlights: "data-reactid =" 16 "> Second Quarter Financial Fiscal 2020 Financial Highlights:
- Revenue: Total revenue for the quarter was $ 145.8 million, an increase of 96% the year before
- Operating and operating margin income: GAAP operating income for the quarter was $ 2.3 million, compared to $ 3.4 million in the second quarter of fiscal 2019. After adjusting for share-based compensation expense and related payroll taxes, non-GAAP operating income for the second quarter was $ 20.7 million, up from $ 4.5 million in the second quarter of fiscal 2019. For the second quarter, GAAP operating margin was 1.6% and operating margin excluding GAAP 14 , 2%.
- Net income and net income per share: GAAP net income attributable to common shareholders in the quarter was $ 5.5 million, or $ 0.02 per share, compared to GAAP net income attributed to ordinary shareholders of $ 0.5 million $ 1945 or $ 0.00 per share in the second quarter of fiscal 2019.
Non-GAAP net income for the quarter was $ 24.0 million, after adjustment for stock-based compensation expense and related payroll taxes and unallocated income attributable to participating securities, and net income per share was not $ 0.08. In the second quarter of fiscal year 2019, net GAAP revenue was $ 4.9 million, or $ 0.02 per share. The non-GAAP weighted average number of shares has been adjusted to reflect the shares of Class A shares issued in connection with the IPO, including all private placement, outstanding at the end of the period as if outstanding from the beginning of the comparability period. .
- Cash: Total cash, cash equivalents and marketable securities as of July 31, 2019 were $ 755.3 million.
- Cash Flow: Net cash provided by operating activities was $ 31.2 million for the quarter, compared to $ 14.4 million in the second quarter of fiscal 2019. Free cash flow was $ 17.1 million, compared to $ 8, 2 million in the second quarter of fiscal 2019.
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Customer Methods: & nbsp; Drivers of total revenue include acquiring new customers and expanding across existing customers. At the end of the second quarter of fiscal year 2020, Zoom:" data-reactid = "24" > Customer Methods: Drivers of total revenue include acquiring new customers and expanding across existing customers. At the end of the second quarter of fiscal 2020, Zoom had:
- Approximately 66,300 customers with more than 10 employees, an increase of approximately 78% from the same quarter last year.
- 466 customers who contributed more than $ 100,000 over 12 months. revenues, an increase of about 104% from the same quarter last year.
- A subsequent 12 month net dollar expansion rate for customers with more than 10 employees over 130% for the fifth consecutive quarter.
<p class = "canvas – atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Financial Outlook: & nbsp; Zoom provides the following guidance for the third quarter's fiscal 2020 and full-year fiscal year 2020. "data-reactid =" 29 "> Financial Outlook: Zoom provides the following guidelines for the third quarter's fiscal 2020 and full year fiscal 2020.
- Third Quarter Financial 2020: Total revenues are expected to be between $ 155.0 million and $ 156.0 million and non-GAAP revenues are expected to be between $ 6.0 million and $ 7.0 million. Q3 non-GAAP EPS is expected to be approximately $ 0.03 with approximately 294 million non-GAAP weighted average shares.
- Full Year Fiscal 2020: Total revenue is expected to be between $ 587 million and $ 590 million and non-GAAP operating income is expected to be between $ 42 and $ 45 million. EPS is not expected to be approximately $ 0.18 to $ 0.19 for the full year with non-GAAP weighted average shares.
Further information on Zoom's reported results, including a reconciliation of non-GAAP results with their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures with similar GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty surrounding expenses that may accrue in the future.
An additional financial presentation and other information may be accessed through the Zoom Investor Relations website at investors.zoom.us.
<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Zoom Video Earnings Call "data-reactid =" 35 "> Zoom Video Earnings Call
<p class =" canvas-atom canvas-text Mb (1.0em) Mb (0) – cm Mt (0.8em) – cm "type =" text "content =" Zoom will host a Zoom Video webinar for investors on September 5, 2019 at 2:30 pm Pacific Time / 5:30 pm Eastern Time to discuss the company's financial performance and business highlights. will be invited to attend the Zoom Video Webinar by visiting: & nbsp; https://investors.zoom.us/ "data-reactid =" 36 "> Zoo m will host a Zoom Video Investor Webinar September 5, 2019 at 2:30 pm. Pacific Time / 5:30 p.m. Eastern Time to discuss the company's financial performance and business highlights. Investors are invited to attend the Zoom Video Webinar by visiting: https://investors.zoom.us/
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" About Zoom "data-reactid =" 37 "> About Zoom
<p class =" canvas – atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Zoom Video Communications, Inc. ( ZM ) brings team together to get more done in a frictionless video environment Our simple, reliable and innovative video-first unified communications platform delivers video conferencing, voice, webinars and chat on desktop, telephones, mobile devices and conference room systems. Zoom helps businesses create enhanced experiences with leading business app integrations and developer tools to create custom workflows. Zoom was founded in 2011 and is headquartered in San Jose, California with offices worldwide. Visit  zoom.com . "data-reactid =" 38 "> Zoom Video Communications, Inc. (ZM) brings together teams to get more done in a frictionless video environment. Our simple, reliable and innovative video-first unified communications platform provides video conferencing, voice, webinars and chat Zoom helps businesses create enhanced experiences with leading business app integrations and developer tools to create custom workflows. Zoom was founded in 2011 and is headquartered in San Jose, California, with offices around the world. Visit zoom.com .
<p class = "canvas-atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = " Forward-looking statements " data-reactid = "39"> Forward-looking statements
This press release contains explicit and implied "forward-looking statements" within the meaning of the Reform Act of 199 5, and in some cases you can identify forward-looking statements by terms such as "predict," "believe," "estimate," "expect," "think," "can," "can," "plan," "project," "Will", "would", "should", "could", "can", "could", predict, "" potential, "" aim, "" explore, "" continue, "or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may be related to our market size and growth strategy, our estimated and estimated costs, margins, revenues, expenses and growth rates, our future operating results or financial conditions, our plans and targets for future operations, growth, initiatives or strategies. . These statements are inherently subject to a number of uncertainties and risks, including factors beyond our control, which may cause actual results, performance or performance to differ materially and negatively from those assumed or implied in the statements. These assumptions, uncertainties and risks include that our business, among other things, will be harmed by a possible decline in new customers and hosts, renewals or upgrades. Our limited operating history makes it difficult to evaluate prospects and future operating results, we operate in competitive markets, we may not be able to sustain future revenue growth, our business will be harmed by significant interruptions, delays or power outages in our services. co-located data centers, and internet infrastructure failures or disruptions of broadband access can cause current or potential users to believe that our systems are unreliable. Additional risks and uncertainties that may cause actual outcomes and results to differ materially from those contemplated in the forward-looking statements are included under the heading “Risk Factors” and elsewhere in the most recent filings with the Securities and Exchange Commission (“SEC”) , including our quarterly report on Form 10-Q for the quarter ended April 30, 2019. Forward-looking statements only speak from the date when the statements are made and are based on information available to Zoom at the time the statements are made and / or the management's belief in it the timing of future events. Zoom assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.
In this press release, Zoom has provided financial information that has not been prepared in accordance with generally accepted accounting principles in United States (GAAP). Zoom uses these non-GAAP financial measures internally to analyze its financial performance and believes that using these non-GAAP financial measures is useful to investors as an additional tool to evaluate current operating results and trends and to compare Zoom's financial performance with others companies in the industry, many of which present similar non-GAAP financial measures.
Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for comparable GAAP financial measures and should only be read in conjunction with Zoom's condensed consolidated financial statements prepared in accordance with GAAP. A reconciliation of Zoom's historical non-GAAP financial measures with the most directly comparable GAAP measures is provided in the accounting tables included in this press release, and investors are encouraged to review it.
Non-GAAP Income From Operations. Zoom defines non-GAAP income from operations as business income excluding equity-based compensation expense and related payroll taxes. Zoom excludes stock-based compensation costs because it is not cash-based, and excluding this expense provides meaningful additional information about Zoom's operating results and allows investors to make a more meaningful comparison between Zoom's operating results and those of other companies. Zoom excludes the amount of payroll tax related to employee share plans, which is a cash expense because we believe that excluding this item provides meaningful additional information about operating income. In particular, this expense is dependent on the price of our common stock and other factors that are beyond our control and do not correlate with the operation of the business.
Net GAAP Net Income and Non-GAAP Net Income Per Share, Basic and Diluted. Zoom defines non-GAAP net income and non-GAAP net income per share, basic and diluted, to which GAAP net income is attributed to common shareholders and GAAP net income per share is attributed to ordinary shareholders, basic and diluted, respectively, to exclude share-based compensation expense and related expense expense. and unallocated income attributable to participating securities. Zoom excludes non-distributed earnings that can be attributed to participating securities because they are considered by management to be outside of Zoom's core business performance, and excluding them gives investors and management greater visibility into the underlying performance of Zoom's business operations, facilitates comparability of results with other periods, and also facilitate comparison with the performance of other companies in the industry.
To calculate non-GAAP net income per share, basic and diluted, Zoom uses a non-GAAP weighted average percentage. Zoom defines non-GAAP weighted average shares used to calculate non-GAAP net earnings per share, basic and diluted, to which GAAP weighted average shares used to calculate net income per share are attributed to ordinary shareholders, basic and diluted, adjusted for to reflect the ordinary shares issued in connection with the IPO, including the concurrent issue, which are outstanding from the end of the period as if they were outstanding from the beginning of the comparability period.
Free Cash Flow. Zoom defines free cash flow as GAAP net cash provided by operating activities minus property and equipment purchases. Zoom considers free cash flow to be a liquidity measure that provides useful information to management and investors about net cash provided by operating activities and cash used for investment in real estate and equipment required to maintain and grow the business.
<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Customer Metrics "data-reactid =" 52 "> Customer Metrics
Zoom defines a customer as a separate and distinct purchasing entity, which can be a single paid host or organization of all sizes (including a distinct entity in an organization) that has multiple paid hosts.
Zoom calculates the rate of expansion of net dollars per period end by starting with the annual recurring revenue (ARR) of all customers with more than 10 employees from 12 months prior (Prior Period ARR). Zoom defines ARR as the annual revenue operating rate for subscription agreements from all customers at one time. We then calculate ARR from these customers from the Current Period ARR, which includes any sales, contraction and fatigue. Zoom divides the current period ARR from the previous period ARR to arrive at the net dollar's expansion rate. For the 12-month calculation, Zoom takes an average of the net dollar's expansion rate over a 12-month period.
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Press Relations " data -reactid = "55"> Press Relations
<p class = "canvas-atom canvas -text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Priscilla Barolo
Manager, Communications for Zoom
firstname.lastname@example.org " data-reactid = "56"> Priscilla Barolo
Manager, Communications for Zoom
press @ zoom. us
<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Investor Relations "data-reactid =" 57 "> Investor Relations
<p class =" canvas atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm "type =" text "content =" Tom McCallum
Zoom Investor Relations Manager
email@example.com "d ata-reactid =" 58 "> Tom McCallum [ 1 9459021] Investor Relations Manager for Zoom
|] Zoom Video Communications, Inc.|
|Condensed Consolidated Balances|
|(Undeveloped, in Thousands)|
|31. July  2019|| 31. January
|Cash and cash equivalents||$||213,886||$||63,624|
|Transferable securities||541,380 ]||112,777|
|Accounts receivable, net||95,682||63,613|
|Deferred acquisition cost of contract, current||35,502||26,453|
|Prepayments and other prepaid expenses||29,609 ||10,252|
|Total current assets||916,059||276,719|
|Exposed acquisition cost, long-term||37,688||Property and equipment, net||51,987||37,275|
|Property lease use right for assets||51,126||–|
|Other fixed assets||13,063 ||11,508|
|Total assets  $||1,069,923||$||354,565|
|Liabilities, convertible preferred stock and equity (deficit) |
|Short-term debt :|
|Accrued expenses and other current liabilities||64,586|| 32,256|
|Deferred income, current||163,591||115,122|
|Total short-term debt||228,996||152,341|
|Deferred income, long-term||17,816 19659094]||10,651|
|Operating lease commitments, long-term||] 48,104||–|
|Other liabilities, long-term||31,211||39,460|
|Ko nvertible preferred stock||–||159,552|
|Share capital (deficit):|||
|Additional paid-up capital||760,990 ||17 760|
|Accumulated other comprehensive loss  (68)||(135)|
|Accumulated deficit  (17,398)||(25,153)|
|Total equity (deficit)||743.796|| (7,439)|
|Total debt, convertible preferred stock and shareholders' equity (deficit)||$||1,069,923||$||354,565|
Note: The amount of non- debited accounts receivable included in accounts receivable, net of the condensed consolidated balance sheets were July 8.5, and January 31, 2019 respectively, $ 8.5 million r and $ 7.2 million.
|Zoom Video Communications, Inc.|
|Condensed Consolidated Statements of Operations|
|(Unannounced, in Thousands, Excluding Share and Per Share Amount)|
| Three Months Ended
| Six months ended
|Revenue||$||145826||$  74526||$||267814||$||134596  Revenue costs||27,900||12,973||52,004||19659060] 24,633|
|Operating expenditure:||  |
|Research and Development  15.054||7.049||28.837|| 13,313|
|Sales and marketing||79,652||41,054||143,693 ||77,315|
|General and administrative  20,955||10,028||39,458||17,597|
|Total operating expenditure||115,661||19659090] 58.131||211.988||108.225|
|Net interest income||2,864||463||3,522||899|
|Other income, net||1,628||81 ||1 943||86|
|Net income before provision for income tax||6757||3,966||9,287|| 2,723|
|Provision for income tax||(1 216) ||(141)||(1,532)||(238)|
|Net Revenue  5.541||3.825||7755 [1 9659443]||2,485|
|Unallocated income attributable to participating securities||(20)||(3,329)||(2,794)||(2,485 )|
|Net income attributed to ordinary shareholders||$||5.521||$||496||$||4.961||$||– |
|Net income per share is attributed to common shareholders:||19659443]|
|Diluted||$||0.02||$||0.00||$||0.02||$  0.00|
|Weighted average share used in the calculation of n one share per share is attributed to ordinary shareholders:|
|Diluted||292 185 665||108 454 323||215 774 619||107.584.379|
|Zoom Video Communications, Inc.|
|Condensed Consolidated Cash Flow Statements|
|(U Thousands Thousands)|
| Three Ended Months
| Six months ended
|Cash flow from operating activities:|
|Adjustments to Reconcile Net Income with Net Cash Provided by Operations:|||
|Share-based compensation cost||18,075|| 1 126||24 737||1 975|
|Amortization of deferred tax for contract||8607||4,730||16,026||8,647|
|Depreciation and amortization||3,850||1451||7,174||2,618|
|Amortization of the Open Ranking of Use Rights||1,583||–|| 3 116||–|
|Provision for accounts receivable||1 865|| 637||2693||1056|
|Other||(771) ||27||(514)||38  Changes in assets and liabilities:|
|Accounts receivable||(19 258)||(9,241) )||(35,361)||(22,600)|
|Prepaid expenses and other assets||(14,980)||(2,252)||(23,597) )||(4,132)|
|Deferred contract cost||(19,266)||(13,647)||(33,700)||(22,768)  Payments  (7.156) ||(992)||(2,783)||(206)|
|Accrued expenses and other obligations||22,700||10.879|| 34.923||14.561|
|Net operating income 19659060] (2,295)||–||(3,295)||–|
|Net cash provided by operating activities||31,172||14,351|| 53,408||17,110|
|Cash flows from investing activities:|
|Maturities of marketable securities  22,050||11,935||50,940||23,755|
|Purchase of property and equipment||(14,040)||(6.177) ||(20,937)||(10,027)|
|Net cash used in investment activities||(447,165)||(9,018)||(448,484) ||(16,548)|
|Cash flow from financing activities:|
|Revenue from the original public and private placement, net of loss discounts and commissions and other offer costs||(524)||–||542,947||–|
|Income from exercise of stock options, net after repurchase||410||388||2191||576|
|Principal payments on capital lease obligations||–||(39)||–||(92)|
|Net cash (used in) provided by financing activities||( 114) ||349||545,138||484|
|Net (reduction) increase in cash, cash equivalents and restricted cash||(416,107)||5,682||150.062||1.046|
|Kontanter, kontantekvivalenter og begrensede kontanter – begynnelsen av perioden||632.137||32.185||65.968||36.821|
|Kontanter, kontantekvivalenter og begrensede kontanter – slutten av perioden||$||216.030||$||37.867||$||216.030||19659238 ]||$||37.867|
|Zoom Video Communications, Inc.|
|Avstemming av G AAP til ikke-GAAP-tiltak|
|(Uanmeldt, i tusenvis , eks cept andel og per aksje beløp)|
| Tre måneder slutt
| Seks måneder avsluttet
|GAAP-inntekter fra drift||$||2.265||$||3.422||$||3,822||$||1,738|
|Stock-based compensation expense and related payroll taxes||18,469||1,126||25,131||1,975|
|Non-GAAP income from operations||$||20,734||$||4,548||$||28,953||$||3,713|
|GAAP net income attributable to common stockholders||$||5,521||$||496||$||4,961||$||—|
|Stock-based compensation expense and related payroll taxes||18,469||1,126||25,131||1,975|
|Undistributed earnings attributable to participating securities||20||3,329||2,794||2,485|
|Non-GAAP net income||$||24,010||$||4,951||$||32,886||$||4,460|
|GAAP net income per share – basic and diluted:|||
|GAAP net income per share – basic||$||0.02||$||0.01||$||0. 03||$||0.00|
|GAAP net income per share – diluted||$||0.02||$||0.00||$||0.02||$||0.00|
|Non-GAAP net income per share – basic||$||0.09||$||0.02||$||0.12||$||0.02|
|Non-GAAP net income per share – diluted||$||0.08||$||0.02||$||0.11||$||0.02|
|GAAP weighted-average shares used to compute net income per share – basic||271,813,141||83,330,741||192,130,510||81,999,734|
|Non-GAA P unweighted adjustment for common stock issued in connection with IPO||—||152,665,804||75,590,307||152,665,804|
|Non-GAAP weighted-average shares used to compute net income per share – basic||271,813,141||235,996,545||267,720,817||234,665,538|
|GAAP weighted-average shares used to compute net income per share – diluted||292,185,665||108,454,323||215,774,619||107,584,379|
|Non-GAAP unweighted adjustment for common st ock issued in connection with IPO||—||152,665,804||75,590,307||152,665,804|
|Non- GAAP weighted-average shares used to compute net income per share – diluted||292,185,665||261,120,127||291,364,926||260,250,183|
|Net cash provided by operating activities||$||31,172||$||14,351||$||53,408||$||17,110|
|Purchases of property and equipment||(14,040)||(6,177)||(20,937)||(10,027)|
|Free cash flow (non-GAAP)||$||17,132||$||8,174||$||32,471||$||7,083|
|Net cash used in investing activities||$||(447,165)||$||(9,018)||$||(448,484)||$||(16,548)|
|Net cash (used in) provided by financing activities||$||(114)||$||349||$||545,138||$||484|